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Car giants look to Israel for self-driving technology
The Existential Question Facing the Auto Industry
The Merging Worlds of Technology and Cars
Car Makers Hunger for Self-Driving Tech
Maniv’s goal is to identify, fund and help grow young
companies poised to enable, and to benefit from, the
massive change in mobility ahead – including
technology to support autonomous transportation.
In the past two years we have backed thirteen such
companies in Israel and the US - and are seeking
resources to do more.
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TRADITIONAL TRANSPORTATION IS HIGHLY INEFFICIENT, AND HAS BECOME OUTMODED
SOURCE: MCKINSEY
AN AMERICAN ROAD REACHES PEAK THROUGHPUT ONLY 5% OF THE TIME
EVEN THEN, IT IS ONLY 10% COVERED WITH CARS
US LAND USE IN SQUARE MILES
DelawareParking
5000 2491
0.8% looking for parking
0.5% sitting in congestion
2.6% Driving (productive use)
The typical American car spends ~96% of its time parked
86% of fuel never reaches the wheels
Inertia
Transmission Losses
Energy used to move the person (productive use)
Auxiliary PowerRolling ResistanceAerodynamics
Engine Losses
Idling
ENERGY USE WITHIN THE VEHICLE
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POTENTIAL SAVINGS FROM AUTONOMOUS VEHICLES
SOURCE: MORGAN STANLEY
AUTONOMOUS VEHICLES TOTAL
SAVINGS $1.3TN
$158 BILLION
Total savings from accident avoidance
Productivity gains from autonomous cars
Productivity gains from congestion
avoidance
Fuel savings
Fuel savings from congestion avoidance
$11 BILLION
$138 BILLION
$507 BILLION
$488 BILLION
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…TO A DIGITAL PLATFORMsoftware
machine vision machine learning
big data embedded systemsrobotics
cybersecurity
Which aligns rather well with Israel’s core technological strengths
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$1.3B Acquisition $2B Valuation
ISRAEL HAS ALREADY ESTABLISHED AN IMPRESSIVE RECORD IN MOBILITY STARTUPS
Acquired for $170M Acquired for $70M
$890M IPO (Israel’s largest) $7B market cap
Many veteran entrepreneurs from telecom sector as well as early mobility innovators (Waze, Mobileye, Moovit, etc) now creating or supporting a new wave of mobility startups
A MATURING ECOSYSTEM
Smart rideshare leader Leading transit app
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ISRAELI INVESTORS’ ENTHUSIASM FOR START-UPS BUCKS GLOBAL TREND
WITH A COMBINED VALUE OF
ISRAEL IN 2015 SAW
$87 million$9.02 billion
AND AVERAGE DEAL SIZE OF
104 exits
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
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4
3
2
1
0
Israeli high-tech capital raising
$BN
Foreign & other investors Israeli VCs
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MAJOR TECH COMPANIES DO R&D IN ISRAEL
GM is the first carmaker to have established a high tech R&D center in Israel-it is now planning to triple the size of the center while other carmakers are actively looking to follow
AND CARMAKERS ARE FOLLOWING THIS TREND
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AND THE INDUSTRY IS SUDDENLY BEGINNING TO TAKE NOTE
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May 2016Here's Why the Global Automobile Industry Is Turning to ... Israel?
Jun 2016
Autonomous cars herald new era for Israeli high-tech
Jun 2016
Car tech fast lane? Why automobile makers are rushing to Israel
Jun 2016Israel should be the first country to support driverless cars
EXIT POTENTIAL: AUTOMOTIVE TECH M&A MARKET IS HEATING UP
85%
59%
97%
57%
24%
Of automotive executives expect the M&A market to improve in the next 12 months.
Of automotive companies expect to pursue acquisitions in the next 12 months.
Of automotive companies expect to close the same number or more deals in the next 12 months when compared to the prior year.
Of automotive companies intend to pursue acquisitions outside their own sector.
Of future transactions are anticipated to exceed U.S. $250 million in value.
SOURCE: ERNST & YOUNG
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TREMENDOUS ACQUISITION HUNGER AND HUGE INVESTMENTS IN THIS SPACE:
Jan 2016
Nov 2015
Mar 2016
Google to Get Fiat Chrysler Minivans for Self-Driving Tests
May 2016
Uber buys self-driving truck startup Otto; teams with Volvo
Ford and Baidu Invest $150 Million in Velodyne for Affordable Lidar for Self-Driving CarsAug 2016
Aug 2016
FORCES DRIVING CHANGE IN THE AUTOMOTIVE INDUSTRY
DEMOGRAPHIC TRENDS
BUSINESS MODEL INNOVATION
TECHNOLOGICAL PROGRESS
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DEMOGRAPHIC CHANGE WILL ACCELERATE DISRUPTION
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May 2016Why There’s Been a Huge Decline in Drivers’ Licenses for Millennials and Gen X
Jan 2016
Why Self-Driving Cars Will Change Retirement
Oct 2014
Mar 2016Google Thinks Self-Driving Cars Will Be Great for Stranded Seniors
MAPPING THE OPPORTUNITY
AUTONOMYBUSINESS
MODEL INNOVATION
CONNECTIVITYVEHICLE
ARCHITECTURE INNOVATION
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ESTABLISHED MARKET PLAYERS
AUTONOMYBUSINESS
MODEL INNOVATION
CONNECTIVITYVEHICLE
ARCHITECTURE INNOVATION
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MANIV’S PORTFOLIO
AUTONOMYBUSINESS
MODEL INNOVATION
CONNECTIVITYVEHICLE
ARCHITECTURE INNOVATION
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ROBOTICS
STEALTH STAGE
STEALTH STAGE
STEALTH STAGE
STEALTH STAGE
STEALTH STAGE
MANIV’S EDGE
INVESTORS
AUTOMOTIVE
TECH
Boston
Israel
Silicon Valley
Tier 1sOEMs
Israel United Kingdom
New York
Israel
Silicon Valley
GOVERNMENT/REGULATORY
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MANIV’S TEAM
MICHAEL GRANOFF
Michael founded Maniv Investments in 1997. Through its subsidiaries, Maniv Bioventures, Maniv Energy Capital and Maniv Mobility, he has been associated with dozens of startup enterprises during that time, and many successful exits (including Ironwood Pharmaceuticals (NASD: IRWD) and Metabolix (NASD: MBLX). Michael was instrumental in the creation of Israeli venture fund ICV (with over $150m under management), and serves on its advisory board. Through Maniv, Michael played a central role in Better Place, the electric car network company, as an investor, board member and executive. Through that and related experiences, Michael has developed a deep network and keen understanding of the automotive industry.
Michael was closely involved in the establishment of, and remains a board member of, Securing America’s Future Energy (SAFE), a DC-based policy development and advocacy organization that engages corporate and retired military leaders to develop and advocate for policy that bolsters the energy security of the United States.
Michael has a BA from Tufts University, an MBA from the Kellogg School of Management, and a JD from Northwestern School of Law. He has completed more than 20 marathons and he and his wife have four young children.
OLAF SAKKERS
Olaf has developed deep technical expertise in new mobility, including autonomous vehicle technology, mobility business model innovation, automotive cybersecurity and public policy related to all these areas. He has worked directly on shaping autonomous vehicle policy and has published articles about how new mobility technologies are reshaping the automotive industry.
Olaf has a B.A. from Princeton University and served in the IDF’s Foreign Relations branch acting as a military liaison with the U.S. military.
PHOTOPHOTO
BROAD SUPPORT NETWORK
Maniv has a broad network across the entire ecosystem and indents to rely heavily on it for deal flow, diligence, and supporting portfolio companies.
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